.u. mark, thanks very much. spain is among europe's largest economies, but the government has borrowed so much money that it's been forced into huge spending cuts and layoffs to try to repay what it owes. one of the people working to rescue europe is christine lagarde. she's the head of the international monetary fund and one of the most powerful people in the world in finance. the i.m.f. is essentially a massive bank that helps countries manage debt and international trade. at her headquarters in washington, we asked lagarde about the spaniards like the ones you just met. >> i feel very bad and very sorry for the people, because i know how hard it is and i know how difficult it is for people who lose their job, for families who find it difficult to make ends meet. but equally i know that it's necessary. and it's a process through which countries have to go in order to restore their situation and be able to grow again and create jobs again. >> pelley: how long do you imagine the troubles in europe will go on? >> it has been going on for a long time. a lot has been done. you know, the euro

this is the first day of the federal government's new fiscal year. but there's not much to celebrate because the nation is headed toward what's being called the fiscal cliff and there are dire new warnings today about what will happen to american families unless congress and the president reach a budget deal by december 31. that is the day that a series of tax cuts will expire and big cuts in federal spend will take hold. tax experts said today 90% of american families are facing what they call unprecedented tax increases. how much? wyatt andrews is in washington tonight. wyat >> reporter: scott, according to the non-partisan tax policy center, the united states is now on the threshold of one of the largest tax increases in history-- a tax hike that could average $3,500 for every american household. without action by congress, the report says, taxes will go up next year by 20%-- $536 billion overall and will hit americans at every income level, including those living below the poverty line. for a middle-income family making $40,000 a year, taxes will go up by $2,000. the increases are so lar

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